Learning Currency Trading – Part 8: EUR/GBP

The symbol EUR/GBP stands for Euro/British Pound. It tells us about the number of British Pounds required to purchase one Euro. In the symbol, EUR is the base currency while the GBP is the counter currency.

General Facts and Importance

Various websites and forex analysts have concluded that the most important and the most voluminous exchange rate in the United Kingdom is the rate of exchange of EUR to GBP. While EUR is the world’s second largest trading currency, GBP happens to be the fourth. The currency pair is of immense importance when the proximity of the location and nature of trade between the UK and the Euro zone is taken into account.

More goods, as compared to services, are exchanged between the UK and EU. Almost half of UK’s exports are directed to and imports are directed from the different members of the EU.

The EU market is one of the world’s largest markets. Moreover, most of the members of the EU are rich nations that enjoy rather stable political atmosphere that ensures a safer and stronger currency. Unlike the UK where debates over joining or not joining the EU lead to conditions that ultimately favour the Euro and depreciates the pound. With its 28 members, the EU has made sure that it happens to be the origin and the termination point for a great many trades, consequently supporting the already strong position of the Euro.

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Famous Quotes from Professional Traders

Trading is all about possibilities and sometimes you'll win, sometimes you'll lose or sometimes you'll be losing for so long that you get frustrated. People assume that a trader's life is full of pros but ask a real trader and they'll probably laugh at that assessment. In reality, sometimes they just want to quit because of it but rest assured, after this article, quitting will be the last thing on your mind. Take it from the people who've been doing it for years and got big:

1. “In this business if you’re good, you’re right six times out of ten. You’re never going to be right nine times out of ten.” -Peter Lynch

The possibility of a good trade or a bad one can not be forseen and instead of getting emotional about just think of it as part of the game.

2. What seems too high and risky to the majority generally goes higher and what seems low and cheap generally goes lower.” -William O’Neil

The message here is to understand the dynamics. Some of them might seem appealing but are actually not or viceversa.

3. “It takes 20 years to build a reputation and 5 minutes to ruin it. If you think about that, you’ll do things differently.” – Warren Buffett

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The Forex Industry – Uncut Version

This article might possibly shock you and make you question everything you've ever been told personally by a 'professional' trader, as well as potentially offend many (if not all) of the experienced forex traders. The purpose of this article is to 'expose' everyone in your life who's told you everything against this article.

I'm pretty sure that what initially inspired many people to pursue trading was all the hype that the media created regarding the simplicity and luxury that comes with being in this industry. Traders you personally know might have showed-off their new car or huge house in an attempt to 'encourage' you to begin trading. The truth is that all of that was a lie.

Now don't get me wrong, gradually you can have that new car or extravagant lifestyle but what everyone fails to mention is that it doesn't just present itself to you in a hand basket. You need to work for years on end and one good trade won't do you any favours if you don't know what you're doing.

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Live Vs. Demo Trading Accounts

There are numerous forex trading platforms that allow you trading through them and in order to start trading you have to create an account. Now there are different types of accounts that can be categorized as live and demo accounts. Demo accounts are basically for beginners to learn about trading without risking any money.

Now obviously it is good to practice one’s trading strategy with a demo account but the problem is that people stay on their demo accounts too long. A time comes when the trader has mastered the screen time and has all the relevant knowledge but when he/she starts trading with a real account, they start to lose their money.

It is good to know all the ins and outs of trading, understanding the market and charts and other relevant knowledge about trading before entering the real trading world. But if you don’t jump in and get your feet wet, you’re never going to develop the skills to succeed in the market. They are good to educate you but they are only simulations, not the real thing. Also, you are never going to get those ‘perfect’ scenarios in the real world, for example, order fills, stop out levels, prices and etc. are different in demo accounts. The reason why traders do much better on demo accounts is because there is no risk involved and no emotions clouding their judgment either.

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Take your Forex Losses Like a Man

Only a fool would believe that you can enter the competitive Forex arena without taking a few blows. An even bigger fool would also believe that all the blows he or she might endure are shallow. Accepting loss is one of the key elements any trader or investor has to master even before they go ahead with their first trade. It’s an inevitable part of the daily forex circle of life, some will rise and others will fall instantly and it can’t be any simpler than that.

Although you cannot avoid losses altogether there are ways which an aware trader can take advantage of in order to always be the one holding the reins regarding how hard he or she is to fall if they do.

Traders are probably tired of hearing this but actually it’s the most important and basic rule of any venture in the trading world, that is to never stray from your strategy. Forex trading is part lack and part intuition among others but one of the biggest mistakes both novice and experienced traders make is overestimating their own reach. There might be a day where the wins seem to be flowing in but this confidence should never hypnotise the trader and trick them into trading and investing more than they originally planned to.

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Learning Currency Trading – Part 7: EUR/JPY

Introduction:

The symbol EUR/JPY stands for Euro/Japanese Yen. It tells the reader about the number of Japanese Yen that is needed to buy one Euro. In the EUR/JPY currency pair, EUR is the base currency while JPY is the counter currency.

EUR/JPY is one of the most heavily traded currency pairs. However, many forex traders find this pair to be highly volatile with a very large loss risk associated with its exchange. Depending on the market conditions, this particular exchange could either help the trader earn big profits overnight or cause him great losses.

General facts and importance:

Japan and the EU are two successful giants in the global market. With Japanese Yen serving as a proxy currency for Asia and EUR being the representative of the entire Euro zone, the significance of the currency pair can hardly be undermined.
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Learning Currency Trading – Part 3: USD/JPY

Introduction:

USD/JPY stands for U.S. Dollar/Japanese Yen. The symbol denotes how many Japanese Yen are needed to acquire one US dollar. In the currency pair symbol, the USD is the base currency and the JPY is the counter currency.

This pair is made up of an American and an essential Asian currency. The unique aspect of this particular currency pair is that it offers a wider forex market operation time range owing to the large differences between the time zones of US and Asia. The Japanese Yen is largely traded in the forex market during the Asian working hours in the daytime, hence, giving more time to trade for traders elsewhere in the world.

This pair is favoured not only by the novices in the forex market, but also by the veterans. The reason lies in the value of Yen being a safe resort for traders during times when the volatility in the market is exceptionally low.

• General facts and importance:
• Factors affecting the pair:
• Taking advantage of news trading to make money while trading:

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Learning Currency Trading – Part 2: GBP/USD

Introduction:

The quotation GBP/USD stands for British Pound/U.S. Dollar and articulates the number of USD required for obtaining one GBP. In the symbol above, the GBP stands for the base currency while the USD is the counter currency.

GBP/USD currency pair is one of the world’s most heavily traded pairs, which absorbs over 12 per cent of the total market share almost every day. Ranking fourth in the list of the most oft-traded pairs, the GBP/USD is particularly important when trading with Great Britain and other European countries.

Like all other currency pairs, the GBP/USD pair undergoes abrupt and evident changes on a daily basis. However, very similar to the EUR/USD pair, this currency pair is also unpredictable and exhibits extremely high volatility, making it hard for many traders to predict its next trend.

Great Britain and the United States together form one of the biggest giants in the world market, both of them being home to the most of the world’s most important and largest multinational corporations. The two also tend to have exemplary economic stability and progress, thus making the GBP/USD currency pair crucial in the forex market.

General facts and importance:
Factors affecting the pair:
Taking advantage of news trading to make money while trading:
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Learning Currency Trading – Part 1: EUR/USD

Introduction:

EUR/USD is frequently used to denote the approximate value of USD that needs to be exchanged in order to obtain a single EUR. In the quotation EUR/USD, the EUR represents the base currency while the USD is taken as the counter currency.

EUR/USD is perhaps the world’s most widely used and oft-traded currency pair. The reason for the popularity and excessive use of the pair lies in the fact that each of the two currencies are representatives of the world’s most powerful economies; namely, Europe and the United States respectively. The wave of changes throughout the world market is almost always attributed to the fluctuations in at least one of the two currencies.

General facts and importance:
Factors affecting the pair:
Taking advantage of news trading to make money while trading:

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ECN Markets - What Are They?

Brokers who work on the ECN markets are often considered to be counterparties to conventional forex transactions. One of the main reasons for that is because they operate on a settlement basis. They don’t worry about working on a pricing basis. Many market makers offer fixed spreads to their clients, but in ECN markets, the spreads generally tend to vary. The biggest factor that determines the amount of variance is the trading activity of the pair.

HiWayFX offers ECN NDD Accounts covering the trading needs of advanced traders. With leverage up to 1:500, spreads starting from 0 pips, high speed of execution and best prices, traders get the best possible conditions for each order they place.
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Swing Trading

Definition:

Swing Trading is a term often employed to refer to a special method of trading in which the aim is to muster gains of a stock within a set time period of one to four days. Traders who employ this method of trading are more interested in the prevailing value patterns and drifts. The main objective is to collect the profits as soon as the market touches a certain high point.

A swing trader needs to be adept at the skill of technical analysis to formulate his strategy within a very short period of time.

The name swing trading is often used to refer to this type of trading because the currency pairs often reach their greatest potential only for a very short period of time and the trader needs to act immediately in order to be able to garner the gains.

Essentials for swing trading:

Swing trading is not as easy as the name implies. Following are a few things that a trader should know about before deciding to take a shot at being a swing trader:
1) Knowing about the points of resistance and support;
2) Test your conclusions;
3) Application;

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